Gibellini (Vanadium)

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    Gibellini Project Summary

    In June, 2017, Prophecy acquired through lease, the Gibellini vanadium project in Nevada, USA (the “Gibellini Project”) with the intent to carry-out mining and processing operations there.

    The lease is for a term of 10 years, which can be extended for an additional 10 years at Prophecy’s option.

    Based on the Company’s research, Gibellini which will be an open pit, heap leach project has the potential to become the first primary vanadium mine in the United States.

    The property is situated on the east flank of the Fish Creek Range in the Fish Creek Mining District, and is easily accessed by a graded gravel road extending south from US Highway 50.

    The project is comprised of 40 unpatented lode claims totaling approximately 826 gross acres in the state of Nevada, which is ranked among the world’s top 10 mining jurisdictions according to the Fraser Institute. Opportunities also exist to further expand the project beyond its current definition.

    The Gibellini Project was undergoing the initial stage of the permitting process but was placed on hold by the original owner. The permitting process can be resumed in short order.

    AMEC E&C Services, Inc. (“AMEC E&C”) in August 2011 prepared the Gibellini Project feasibility study for American Vanadium Inc. Prophecy is working with AMEC E&C to bring the report current.

    By combining the advanced-stage Gibellini Project in Nevada, USA, with the Company’s 100%-owned, Titan titanium-vanadium project in Ontario, Canada, Prophecy is well-positioned with these two quality vanadium projects, to be the leading North American vanadium exploration company. The Company’s objectives for these two projects are to:

    1. Provide exposure and leverage to rising vanadium prices by defining and adding attributable vanadium resources in the ground in politically safe jurisdictions.
    2. Build the first vanadium mine in North America by steadily advancing mine permitting, project financing and construction.

    Louie Hill Project Summary

    The Louie Hill Project lies approximately 500 metres south of the Gibellini project, is easily accessed by a graded gravel road extending south from US Highway 50, and is about 25 miles south of the town of Eureka, Nevada.

    The Louie Hill Project is comprised of ten unpatented lode claims totaling approximately 207 gross acres in the state of Nevada, which is ranked among the world’s top 10 mining jurisdictions according to the Fraser Institute. Opportunities also exist to further expand the project beyond its current definition.

    Union Carbide reportedly drilled a series of 60 holes at the Louie Hill Project in 1956. Noranda Exploration, Inc. completed five reverse circulation holes (total 610 ft) in 1973. During the 2007 to 2010 period, RMP Resources Corporation (predecessor to American Vanadium Corp. or “AVC”) completed a total of 11,010 ft of drilling in 38 drill holes on the Gibellini project and Louie Hill Project. Nine were drilled in the Louie Hill Project.

    The Louie Hill Project is located in the same formation and lithologic units as the Gibellini project. The general geology in this area is considered to be similar to the Gibellini project.

    Direct leaching of black shale vanadium materials

    Black shale (also called stone coal) is an important vanadium resource in China, which is world’s largest vanadium producer. Black shale is regarded as a low-grade multi-element ore. However, because of its relatively high vanadium grade compared to other metallic and nonmetallic elements found in black shale, research and studies of the recovery of vanadium from black shale have received considerable attention and investment in China since early 2000, based on the Company’s research. This has resulted in several black shale vanadium-producing mines in China utilizing established, low cost, solvent extraction and precipitation methods today.

    The Gibellini project and Louie Hill Project represent a pure-play vanadium opportunity in North America to investors because Gibellini material is low in deleterious metals and non-metals (typically less than 1% Fe, 0.5% Ca, 0.3% Mg, 0.2% Ti) and is thus conducive to well-established solvent extraction and precipitation methods. Since the process already yields vanadium in sulfuric acid in an intermediary step to producing vanadium pentoxide, it is expected that this intermediary product can be pulled from the process stream and used directly as an electrolyte for grid-scale energy storage batteries.

    Qualified Persons

    The technical contents of this news release have been prepared under the supervision of Christopher M. Kravits, CPG, LPG, General Mining Manager of Prophecy. Mr. Kravits is a Qualified Person as defined in NI 43-101. Mr. Kravits is a consultant to the Company and is not independent of the Company since most of his income is derived from the Company.

    Cautionary Note Regarding Forward-Looking Statements

    Certain statements contained on this page, including statements which may contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management’s expectations regarding Prophecy’s future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. These estimates and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies, many of which, with respect to future events, are subject to change and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by Prophecy.